When company presents the consolidated income statement, company needs to disclose the total consolidated profit for the year. In case of subsidiaries, when parent company holds more than 50% but less than 100%, it becomes controlling interest to extent of its holding and balance stakeholders (100 - % holding by parent co) becomes minority interest.
Consolidation is adopted line by line for each individual item of Income statement and Financial Position. In the mentioned exhibit 5, volkswagen has subsidiary in which total holding of volkswagen in subsidiary is less than 100%.
In case wherein subsidiary has profits: Attributtable to shareholders = Total consolidated profit (profit after tax) - allocation of profit to minorty shares (based on % holding of minority)
In case wherein subsidiary has losses: Attributtable to shareholders = Total consolidated profit (profit after tax) + allocation of losses to minorty shares (based on % holding of minority)
Total income tax expense for 2009 was €349 million, resulting in profit after tax (net income) of €911 million - mentioned amount is consolidated profit for the volkswagen group.
Losses attributable to minority interest ownership in Volkswagen subsidiary companies, €49 million Amounts attributtable to shareholders of the volkswagen = 911+49 = 960 million
Exactly. But isn’t 911 (not 960) consolidated profit from which you have to subtract 49? If 911 includes consolidated lines, then I assume you have to subtract from 911 (not add). Thanks.